i have requirement of reverse charge system.
I have case, this is
Suppose i purchase material from supplier. He gave me invoice without fright. Supplier deliver item through unregistered transport , means transporter don’t have gst no.
Transporter come to my office and told my fright charge is 100 rs. This is not include in invoice. Please pay me 100 rs.
i pay him 100 rs and i want to make 100rs amount legal so i will pay 5% tax to government for fright charge. I will make this entry under reverse charge system. I will give 5% tax to government which i can rebate .
Please let me know how can i do this.
Generally, this would be solved by creating a Landed Cost Voucher.
But since LCV would update the item values in the receipt, and you also want to record it as a legal transaction, you can create a Purchase receipt for the transportation service and select the appropriate reverse charge value.
This would be reflected in the GSTR-2 report.
This does not work. When a Purchase is made from an unregistered dealer there is a need for 'Self Invoicing" which will be in the nature of SI. So in the case of SI, created on behalf of unregistered purchase and the option of Reverse Charge = Yes selected, but it does not impact the report of GSTR2.
And what is the logic built for Reverse Charge = Yes in PI? Could you help me understand the functionality of Reverse Charge, Eligibility for ITC & other ITC fields listed in PI?